Dynamic General Equilibrium Models With Imperfectly Competitive Product Markets (Classic Reprint) - Softcover

Julio Rotemberg

Softcover

ISBN 10: 1330418794 ISBN 13: 9781330418796

Publisher: Forgotten Books, 2018

Synopsis

Excerpt from Dynamic General Equilibrium Models With Imperfectly Competitive Product Markets

A further aim of this paper is to show how existing empirical studies using data at various levels of aggregation can be used to obtain estimates of the departures from perfect competition and from constant returns. While our survey of this literature is far from complete, we show how existing evidence bears upon the calibration of certain of the key parameters of imperfectly competitive models.

Finally, the paper shows that incorporating imperfect competition into equilibrium business cycle theory is easy. It is true that, because the resulting allocation is not Pareto optimal, it is not possible to compute the equilibrium by considering the solution to a planning problem. However, familiar methods for the computation of dynamic general equilibrium models, that make use of an Euler equation characterization of equilibrium (as discussed in detail in the next chapter) can also be applied when markets are not perfectly competitive.

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This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

About this title

Product Description

Excerpt from Dynamic General Equilibrium Models With Imperfectly Competitive Product Markets This paper discusses the consequences of introducing imperfectly competitive product into an otherwise standard neoclassical growth model. We pay particular attention to the consequences of imperfect competition for the explanation of fluctuations in aggregate economic activity. Market structures considered include monopolistic competition, the "customer market" model of Phelps and Winter, and the implicit collusion model of Rotemberg and Saloner. Empirical evidence relevant to the numerical calibration on imperfectly competitive models is reviewed. The paper then analyzes the effects of imperfect competition upon the economy's response to several kinds of real shocks, including technology shocks, shocks to the level of government purchases, and shocks that change individual producers' degree of market power. It also discusses the role of imperfect competition in allowing for fluctuations due solely to self-fulfilling expectations. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

About the Author

Michael Woodford is John Bates Clark Professor of Political Economy at Columbia University and a Research Associate of the National Bureau of Economic Research.

Edition details

• Publisher: Forgotten Books
• Publication date: 2018
• Language: English
• ISBN 10: 1330418794
• ISBN 13: 9781330418796
• Binding: Paperback
• Number of pages: 70